Jakarta (March 9, 2025) – Indonesia’s Business Competition Supervisory Commission (KPPU) has initiated a preliminary investigation into alleged monopolistic practices by PT Pertamina Patra Niaga (PT PPN) in the midstream market for non-subsidized Liquefied Petroleum Gas (LPG).
The investigation, decided in a commission meeting on March 5, follows KPPU’s prior study, which found indications of monopolistic behavior, including high pricing and excessive profits (“super normal profit”). KPPU reported that PT PPN, which controls over 80% of domestic and imported LPG supply, allegedly sold non-subsidized LPG at a significantly higher price, leading many consumers to switch to subsidized 3kg LPG.
KPPU suspects that PT PPN’s pricing practices could violate Indonesia’s Competition Law (Law No. 5/1999, Article 17 on Monopolies). The high prices have reportedly burdened state subsidies and increased LPG imports.
The investigation will focus on gathering evidence to assess whether PT PPN’s actions have led to anti-competitive market conditions.
Source: https://kppu.go.id/wp-content/uploads/2025/03/Siaran-Pers-No.-015_KPPU-PR_III_2025-Sign.pdf
